Authority of the BIR Commissioner and Regional Directors Re: Issuance of Letter of Authority and Taxpayer's Investigation

January 1999 DOF DEPARTMENT ORDER NO. 006-99 DEFINING THE AUTHORITY OF THE COMMISSIONER OF INTERNAL REVENUE AND REGIONAL DIRECTORS RE: ISSUANCE OF LETTER OF AUTHORITY AND TAXPAYER'S INVESTIGATION WHEREAS, the Bureau of Internal Revenue falls under the supervision and control of the Department of Finance as provided for in Section 2 of the National Internal Revenue Code of 1987 and Book IV, Title II, Chapter 4, Section 18 of the Administrative Code of 1987; LibLex WHEREAS, there is a need to define the authority of the Commissioner of Internal Revenue and Regional Directors regarding issuance of Letters of Authority in the conduct of taxpayer's investigation; NOW, THEREFORE, I EDGARDO B. ESPIRITU, Secretary of Finance, by virtue of my power of supervision and control over the Bureau of Internal Revenue, do hereby order: SECTION 1. Scope . This Department Order shall apply to all Letters of Authority and taxpayer's investigation by the Bureau of Internal Revenue. SECTION 2. Issuance of Letter of Authority . The Commissioner of Internal Revenue shall issue Letter of Authority for those units directly reporting to him. Regional Directors shall issue Letter of Authority for taxpayers covered by his particular region. In the event that the Commissioner has already issued a Letter of Authority to investigate a particular taxpayer, the Regional director concerned shall desist from issuing any Letter of Authority to investigate that particular taxpayer. The Regional Director shall report to the Commissioner on a weekly basis all letters of Authority issued. SECTION 3. Taxpayer's Investigation . All investigations of taxpayers shall be covered by a Letter of Authority issued by either the Commissioner of Internal Revenue or Regional Directors only. A revenue officer shall within one hundred twenty (120) days from the date of the issuance of Letter of Authority conduct his audit and submit his investigation. While the case is pending completion a progress report shall be submitted every end of the month to the head of the audit office, copy furnished the issuing authority. If the final report is not completed within the 120-day period, the revenue officer shall then return the Letter of Authority for revalidation. The revalidation shall be limited to one issuance only and is done by issuing a new Letter of Authority. SECTION 4. Reporting Requirement to the Secretary of Finance . The Secretary of Finance shall be given copies of all Letters of Authority issued by either the Commissioner of the Internal Revenue or the Regional Directors within seven (7) days from the date of the issuance. A status report of all Letters of Authority issued within the month shall be submitted to the Secretary of Finance by the issuing authority within seven (7) days following the end of the succeeding month. The Secretary of Finance may require the submission of the reports of investigation/dockets of the cases from time to time. cdlex SECTION 5. Penalty . Violations of the provision of this Department Order shall be meted with penalty as provided by existing laws, rules and regulations. SECTION 6. Repealing Clause . All administrative issuances inconsistent with this Department Order are hereby repealed or modified accordingly. SECTION 7. Effectivity . This Department Order shall take effect immediately. DONE in the City of Manila, this ____ day January, 1999. (SGD.) EDGARDO B. ESPIRITU Secretary of Finance